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The Two Main Types of Identity Theft

By Ruth Racey
Published: Wednesday, December 30th, 2009

Identity theft is one of the fastest growing crimes in the Unites States. Every year, thousands of consumers are actually being victimized by this crime. Given the technology that is present right now, there are just a lot of ways on how thieves can do this crime. Basically, identity theft is, obviously, all about thieves who are able to steal your identity, and use it to their advantage. Specifically, this crime involved thieves who are able to access your financial and other personal accounts and use up its benefits in your name. This is the reason why a lot of people have run bankrupt because of this crime. Adding indult to injury, your reputation is also harmed in addition to the economic distress that it brings. 

There are a lot of personal accounts that thieves can steal to their advantage. First of which is your bank account. Usually, thieves try their best to hack and access your bank account, and withdraw all your money. In addition, identity theft can also involve thieves who steal your credit card account, your social security account, your medical insurance, and even your driver’s license. The common thing about all of these kinds is that they make your financial situation into a mess. As long as they are able to steal these accounts, they can do a range of things from stealing your money, getting loans in your name, channel taxes to your account, and even damage your reputation. 

Identity theft can be classified into two main types. The first here is called account takeover. The other kind is called true name. Try to take a look at the characteristics of these two different types: 

  • Account takeover
    In account takeover, thieves are able to steal your personal financial accounts, and retain these accounts for their usage. One of the most common forms of this kind of identity theft is credit card identity fraud. In this case, the thief will actually use your credit card account to pay for all of his/her purchases. In addition, the thief would also try to change your address so that you cannot easily monitor your bills actually being racked up.  
  • True name
    Meanwhile, in true name, thieves are able to get sensitive personal information from you. Then, they would use such information to make and apply for new financial accounts, such as a new credit card account. In this case, thieves may be able to steal money from you by accumulating a debt in your name. This is truly a very problematic financial situation on your part.

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